Consumer companies are seeing a rise in confidence as hopes grow that the Federal Reserve will adopt a less hawkish stance in its upcoming policy statement. This positive sentiment is reflected in the S&P CoreLogic Case-Shiller National Home Price Index, which saw home prices across the nation increase by 2.6% in August compared to the previous year. This represents a significant jump from the 1.0% annual increase recorded in the previous month and marks the highest level since the index’s inception in 1987.
Consumer Confidence Drops Amidst Concerns
However, despite this positive news, a survey conducted on consumer confidence paints a different picture. In October, consumer confidence hit a five-month low of 102.6. The decrease can be attributed to concerns surrounding inflation, rising interest rates, and the ongoing conflict between Israel and Hamas.
Holiday Sales Growth Projections
Telsey Advisory Group, a retail specialist brokerage, has projected growth in holiday-season sales to be in the range of 3.5% to 4%. Although this is slightly lower than the approximately 5.4% growth recorded in 2022, there is still cause for optimism. The “direct-to-consumer” retailers, also known as “digitally native brands,” are expected to be the strongest performers with an estimated 11% growth compared to the previous year.
JetBlue Airways Experiences Earnings Decline
Unfortunately, JetBlue Airways did not fare as well in the third quarter. The airline’s earnings were impacted by weather disruptions, resulting in a significant decrease in its share price.